The debate over tax cuts for California’s struggling cannabis industry is returning to the Sonoma County Board of Supervisors Tuesday, where supervisors will consider a two-pronged tax-relief proposal.
In the short term, county staff are recommending the cultivation tax on growers be cut by 10%. The board is also set to review a longer-term plan that could switch the basis on which growers are taxed, going from square footage to gross receipts.
The proposals stem from a concerted push by industry advocates to ease the twin burdens of taxes and regulations. Local growers and others across California say they face going out business or back into the black market under the strain of paying state and local taxes and complying with a new host of land-use regulations.
A recent tax hike at the state level buoyed their calls for relief, and on Jan. 25 the Board of Supervisors unanimously approved a delay the due date for first quarter taxes to April 30.
But the assistance now proposed by county staff would come at a cost to taxpayers, reducing projected annual baseline tax revenue by $362,000, according to a staff report.
“What’s being proposed is a fairly modest piece of temporary tax relief,” Supervisor Chris Coursey said.
